Convertible loan not to be converted

In summer 1981, Orkla Industrier A/S, subsequently Orkla ASA, undertook a convertible bond issue with a nominal value of NOK 40 million. The outstanding bonds are currently equivalent to almost NOK 30.6 million. Orkla owns bonds with a nominal value of more than NOK 30.5 million, mainly through A/S Drammen Kjexfabrikk. The Board of Directors of Orkla ASA has now decided not to convert the loan.

The loan includes an unrealised capital gain which, had it been converted, would have brought Orkla a profit of somewhere between NOK 800 million and NOK 900 million. Such conversion would have represented an approximately 4.5% ownership interest for Orkla. The decision not to convert the loan means that this ownership interest will be amortised.